Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $1,200.

In the Matter of
BANK OF COMMERCECHANUTE, KANSAS(Insured State Nonmember Bank)
ORDER TO PAY CIVIL
MONEY PENALTY

FDIC-01-107k

Bank of Commerce, Chanute, Kansas ("Bank") has been
advised of the right to receive a NOTICE OF ASSESSMENT OF CIVIL MONEY
PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND
NOTICE OF HEARING issued by the Federal Deposit Insurance Corporation
("FDIC") detailing the violations for which a civil money penalty
may be assessed against the Bank pursuant to the Flood Disaster
Protection Act of 1973 ("Flood Act"), as amended, 42 U.S.C.
§4012a,
{{11-30-01 p.C-5193}}

section 8(i)(2) of the Federal Deposit Insurance Act
("FDI Act"), 12 U.S.C. §1818(i)(2), and Part 339 of the FDIC
Rules and Regulations, 12 C.F.R. Part 339, and has been further advised
of the right to a hearing on the alleged charges under the Flood Act,
12 C.F.R. §4012a(f), section 8(i) of the FDI Act, 12 U.S.C.
§1818(i), and the FDIC Rules of Practice and Procedure, 12 C.F.R.
Part 308.

Having waived those rights, the Bank entered into a STIPULATION AND
CONSENT TO THE ISSUANCE OF AN ORDER TO PAY CIVIL MONEY PENALTY with a
representative of the Legal Division of the FDIC, whereby solely for
the purpose of this proceeding and without admitting or denying any
violations, the Bank consented and agreed to pay a civil money penalty
in the amount of $1,200 related to the violations of the Flood Act, 42
U.S.C. §4012a, and Part 339 of the FDIC Rules and Regulations, 12
C.F.R. Part 339, cited at the FDIC's January 29, 2001, examination, in
that it has made, increased, extended or renewed loans secured by a
building or mobile home located or to be located in a special flood
hazard area without requiring that the collateral be covered by flood
insurance; it has made such loans without sufficient flood insurance
coverage; it has failed to use the Standard Flood Hazard Determination
form as required; and it has failed to provide the required notice to
borrowers.

The FDIC considered the matter and determined it had reason to believe
that the Bank has engaged or participated in violations of law or
regulations for which a civil money penalty of $1,200 is appropriate to
be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§4012a, section 8(i)(2) of the FDI Act, 12 U.S.C. §1818(i)(2),
and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339.

ORDER TO PAYCIVIL MONEY PENALTY

IT IS HEREBY ORDERED that the Bank be, and hereby is, assessed a
civil money penalty of $1,200, pursuant to the Flood Act, 42 U.S.C.
§4012a, section 8(i)(2) of the FDI Act, 12 U.S.C. §1818(i)(2),
Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, the
receipt of which is acknowledged.

This Order to Pay Civil Money Penalty shall be effective upon issuance.